Asbury Automotive Group Inc · NYSE:ABG
Asbury Automotive — Q2 2024 Earnings Presentation
32 slides from Asbury Automotive's earnings presentation, Aug 2, 2024
Slide 1: Second Quarter 2024 Investor Relations Presentation
SECOND QUARTER 2024 INVESTOR RELATIONS PRESENTATION ABG | Asbury Automotive
Slide 2: Forward Looking Statements
This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than historical fact, and may include statements relating to goals, plans, objectives, projections regarding Asbury's fi
Slide 3: Asbury dealership brands and team culture
Lark Place NALEY DEALERSHIPS AUTOMOTIVE st Gs» McDavid =o 7, €)KOONS °° » A.Larry H Miller by % @ + Dealerships x % Goggin Ly MIKE'SHAW. ° % CQuRTESY ea ee ims bs) ASBURY % AUTOMOTIVE GROUP () WE ARE ONE | ESTES AUTOMOTIVE STEVINSON = TEAM MEMBERS GUESTS Have a fun, supportive and Be caring inclusiv
Slide 4: Core values
Do what you say you’re going to do We hold ourselves and others accountable, act with integrity, communicate with transparency, and are thorough in our approach Raise the bar We drive towards excellence, demonstrate professionalism, exceed expectations, and anticipate the needs of our guests Invest
Slide 5: Our Agenda
Our Agenda August 2, 2024 01 Company Highlights 02 Second Quarter 2024 Review 03 Growth Strategy 04 Appendix 5 NYSE: ABG
Slide 6: Company Highlights
COMPANY HIGHLIGHTS ABG | Asbury Automotive
Slide 7: Company Highlights
HIGHLIGHTS QUARTER 2 GROWTH APPENDIX Company Highlights $37.66 Since 2018, Asbury has(1) $32.60 $27.29 $15.4B $14.8B 115% increase in revenue (17% CAGR) (2) $12.90 288% increase in Adj EPS (31% CAGR) $8.41 $9.46 $9.8B 90% increase in new car dealerships $6.9B $7.2B $7.1B 155 158 (2) 139 Adj EBITDA A
Slide 8: Company Highlights
HIGHLIGHTS QUARTER 2 GROWTH APPENDIX Company Highlights 1 $15.9 BILLION WA Total Revenue (1) 3 305,397 New and Used Vehicles Retailed(1) ID 15 20 9 9 1.4 million 2 UT 6 IN MD Shares Repurchased(1) CA CO 14 MO VA 12 6 5 2.7x AZ NM Adjusted Net Leverage(2,3) 16 SC 13 GA $806 MILLION TX 24 Available Li
Slide 9: Attractive Brand Mix
HIGHLIGHTS QUARTER 2 GROWTH APPENDIX Attractive Brand Mix A diversified portfolio with the right brands in the right markets (Based on New Vehicle Revenue – YTD 2Q24) Luxury Imports Lexus 10% Toyota 20% Mercedes-Benz 7% Honda 9% Luxury Domestic BMW 3% Hyundai 5% 29% 29% Land Rover 2% Nissan 2% Porsc
Slide 10: The Four Key Components
HIGHLIGHTS QUARTER 2 GROWTH APPENDIX The Four Key Components Diversified business mix provides multiple profit streams (YTD 2Q24) 5% F&I, includes TCA 14% 24% Parts & Service Used 32% New 46% 50% 9% 21% Revenue Gross Profit May not add to 100% due to rounding 10 NYSE: ABG
Slide 11: Second Quarter 2024
SECOND QUARTER 2024 ABG | Asbury Automotive
Slide 12: Summary
HIGHLIGHTS QUARTER 2 GROWTH APPENDIX Summary Q2 2024 Year-Over-Year Strategic Highlights Revenue Earned highest second quarter revenue in company history of $4.2 billion Total Company Same Store Second quarter record parts & service revenue and gross profit Total 13% (5%) Delivered adjusted EPS of $
Slide 13: CDK Outage & Impact
HIGHLIGHTS QUARTER 2 GROWTH APPENDIX CDK Outage & Impact Q2 2024 Year-Over-Year, Same Store New Volume Growth Used Volume Growth Parts & Service Gross Profit 0% 1% 8% 4% (6%) (2%) April - May Pace 2Q Result April - May Pace 2Q Result April - May Pace 2Q Result Estimated impact range of $0.95 - $1.15
Slide 14: Operating Income & Margin Trend
HIGHLIGHTS QUARTER 2 GROWTH APPENDIX Operating Income & Margin Trend We consistently deliver best in class operating efficiency 8.1% 8.3% 7.7% Adj. Operating Margin 7.3% 5.9% 5.7% $1,274 4.6% $1,075 Adj. Operating Income ($M) $793 $567 $502 $405 $334 2019 2020 2021 2022 2023 YTD 2Q23 YTD 2Q24 See Ap
Slide 15: Cash Flow Summary
HIGHLIGHTS QUARTER 2 GROWTH APPENDIX Cash Flow Summary As a larger company with more robust operating cash flow, we have increased capacity for capital deployment Adj. Operating Cash $44.15 Flow per Share $33.64 $31.52 $987 $22.93 $893 $19.60 $19.82 $14.63 $705 $632 $556 $563 $443 $418 $396 $378 $40
Slide 16: Leverage and Liquidity
HIGHLIGHTS QUARTER 2 GROWTH APPENDIX Leverage and Liquidity Robust cash flow providing opportunity for capital deployment – share repurchases and acquisitions Pro Forma Net Leverage Ratio Total Liquidity ($M) $1,682 2.7x $1,589 2.5x 2.6x 1.7x 1.7x $806 $712 $460 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q
Slide 17: Leverage Varies Based on Business Conditions & Environment
HIGHLIGHTS QUARTER 2 GROWTH APPENDIX Leverage Varies Based on Business Conditions & Environment Equilibrium leverage target range balances financial flexibility with an efficient capital structure 2.5x Normal Target Range 3.0x NET DEBT/EBITDA Factors Influencing Leverage Top ECONOMIC CYCLE Bottom Hi
Slide 18: Capital Allocation History
HIGHLIGHTS QUARTER 2 GROWTH APPENDIX Capital Allocation History We have a track record of prudent capital allocation YTD ‘14–’19 2020 2021 2022 2023 2024 Acquisitions $1.3B Revenue Acquired $1.8B Revenue Acquired $5.8B(2) Revenue Acquired N/A $2.7B (4) Revenue Acquired N/A ▪ Dealerships in ▪ Elway C
Slide 19: Growth Strategy
GROWTH STRATEGY ABG | Asbury Automotive
Slide 20: Delivering on Our Mission to Transform Our Business
HIGHLIGHTS QUARTER 2 GROWTH APPENDIX Delivering on Our Mission to Transform Our Business Smart growth strategy powering us to $30B+ in revenue Our Guiding Principles Fulfilling the vision Meeting the future Since starting our journey, we’ve: Affirming our commitment to growth: • Achieve scale throug
Slide 21: Efficient Capital Allocation Drives our Growth and Transformation
HIGHLIGHTS QUARTER 2 GROWTH APPENDIX Efficient Capital Allocation Drives our Growth and Transformation Early emphasis on M&A evolves to a more balanced approach to value creation Capital Allocation Peer Comparison (2020 – 2023) Long-term Strategic Focus Category as % of total Capital Allocation (1)
Slide 22: Acquisitions have played a vital part in growing the portfolio
HIGHLIGHTS QUARTER 2 GROWTH APPENDIX Acquisitions have played a vital part in And will continue to be a core growing the portfolio… element of our growth End of 2019 End of 2Q 2024 Selective pursuit of great assets Acquisitions in strategically important markets (attractive demographics, friendly st
Slide 23: Appendix
APPENDIX ABG | Asbury Automotive
Slide 24: Online Growth: Parts & Service
HIGHLIGHTS QUARTER 2 GROWTH APPENDIX Online Growth: Parts & Service Technology enables productivity and transparency, driving higher $s per repair order Online Service Appointments 392K 128K 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 We b
Slide 25: Debt Maturity Schedule
HIGHLIGHTS QUARTER 2 GROWTH APPENDIX Debt Maturity Schedule Our near-term obligations remain minimal with no significant maturities until 2026 ($ in Millions) $597 Senior Notes $800 Mortgages $600 $405 $446 $162 $31 $74 $69 2024 2025 2026 2027 2028 2029 2030 2031 2032 Note: As of 6/30/2024; Excludes
Slide 26: Non-GAAP Financial Disclosure
In addition to evaluating the financial condition and results of our operations in accordance with GAAP, from time to time management evaluates and analyzes results and any impact on the Company of strategic decisions and actions relating to, among other things, cost reduction, growth, and profitabi
Slide 27: Non-GAAP Reconciliation
HIGHLIGHTS QUARTER 2 GROWTH APPENDIX Non-GAAP Reconciliation Adjusted income from Operations and Adjusted Operating Margin For the Year Ended ($ In millions) For the Six Months Ended June 30, December 31, 2018 2019 2020 2021 2022 2023 2023 2024 Adjusted income from operations: Income from operations
Slide 28: Non-GAAP Reconciliation
HIGHLIGHTS QUARTER 2 GROWTH APPENDIX Non-GAAP Reconciliation Adjusted EBITDA For the Three Months ($ In millions) For the Year Ended December 31, Ended June 30, 2018 2019 2020 2021 2022 2023 2024 Adjusted EBITDA: Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"
Slide 29: Non-GAAP Reconciliation
HIGHLIGHTS QUARTER 2 GROWTH APPENDIX Non-GAAP Reconciliation Adjusted Net Income and Adjusted EPS For the Year Ended For the Three Months (In millions, except per share data) December 31, Ended June 30, 2018 2019 2020 2021 2022 2023 2024 Adjusted net income: Net income $ 168.0 $ 184.4 $ 254.4 $ 532.
Slide 30: Non-GAAP Reconciliation
HIGHLIGHTS QUARTER 2 GROWTH APPENDIX ($ In millions) For the Twelve Months Ended June 30, September 30, December 31, March 31, June 30, 2023 2023 2023 2024 2024 Adjusted EBITDA: Calculation of earnings before interest, taxes, depreciation and amortization ("EBITDA"): Non-GAAP Net Income Depreciation
Slide 31: Non-GAAP Reconciliation
HIGHLIGHTS QUARTER 2 GROWTH APPENDIX Non-GAAP Reconciliation Adjusted Cash Flow from Operations, Adjusted Free Cash Flow and Adjusted Operating Cash Flow Per Share For the Twelve For the Year Ended For the Six Months Ended June 30, Months Ended (In millions, except per share data) December 31, June
Slide 32: Thank You
Thank You https://investors.asburyauto.com 32 NYSE: ABG
Asbury Automotive Group — Q2 2024 Earnings Presentation on 6ix